Spectrum bidding - Does higher bidding lead to higher tariff?

"The Spectrum auction has resulted in huge bidding. There is an argument that this will lead to increase in price/tariff. What reasons makes this argument weak? Is it economics of scale alone? Or there is more?

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The intense competition among the telecom operators will be a huge deterrent to them in rising the prices..

Though they may raise the price, it would only be very marginal..

The high selling price of spectrum was not only due to the high base price but due to the intense competition among the telecom operators to buy it. They have bought it bcoz they know that they can absorb these increased spectrum cost by increasing their efficiency..

Moreover, you have to see this from a different angles. There are three stakeholders in this valuable natural resource called spectrum- they are 1. The government 2. The telecom operators 3. The telecom users!! It is necessary to see that the benefits of this resource are shared by all the three players.. We should not neglect the government in this

By increasing the efficiency means, by expanding into other domains apart from voice calls..

Scale also because rural potential is yet to b tapped.

Our rural teledensity is still just 76% while our urban density is a whopping 166%!!

It will be more about economies of scope rather than scale.. I.e.. Offering multiple services... Like data services, etc..